Solution-What amount should be reported as goodwill on

What amount should be reported as goodwill on December

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Q1. On January 1, 2011, ABC Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, ABC spent additional P800,000 of expenditures designed to maintain goodwill. What amount should be reported as goodwill on December 31, 2011?

Q2. On January 1, 2009, ABC. Company purchased a patent from an original patentee for P2,400,000. The remaining legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2010, the entity paid P550,000 in successfully defending the patent in an infringement suit filed against the entity. On January 1, 2011, the entity acquired a competing patent for P1,500,000. The competing patent has a remaining legal life 15 years but it is not to be used because it was intended to protect the original patent. What is the carrying amount of the patent on December 31, 2011?

Reference no: EM133078544

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What amount should be reported as goodwill on December

Reference no: EM133078544

Reference no: EM133078544

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